Money’s too tight to mention

The study of the UK’s top 600 m&e contractors makes for grim reading: more than one-third report declining sales; over half have seen margins fall; one quarter are now running at a loss and one-third have needed short-term finance. As many as one in ten businesses could disappear entirely if this trend continues, claims the report.

Despite the credit crunch and subsequent slow down, this may be painting an overly gloomy picture of the market conditions facing m&e contractors today. Many firms are upbeat about current workloads, if uncertain about the future.

Nevertheless, reports such as these act as early warning signals and concentrate the mind. What better time to explore new markets that seem to be immune to the vagaries of the construction sector? Take smart homes for example. This is a specialism that has been steadily growing for the past decade, yet few electrical contractors have taken the opportunity to cash in (pages 33-36).

There are many similarities between conventional contracting and smart homes but there are many pitfalls too. Technology is much faster-moving and customer service is paramount.

As ever, education will be the key to success, a message which could have come straight from the launch of SummitSkills’ Sector Skills Agreement (pages 23-25). Money has always been tight, so let’s hope that its three-year plan is successful in unlocking a more employer-centred approach to funding.